Even if the company is capable to close, top executives at the company may receive enormous compensation compensation packages.
Co-founder, who stepped down as CEO late last year, has long declined to get a salary from the social media platform, instead of earning a de minimis $1.40 annual salary. However, Dorsey owned 2.4 percent of the firm, or about 18,042,428 shares, Musk would be purchasing for $54.20 each.
If the transaction was concluded, Dorsey might receive a $978 million cash payout.
According to Twitter's latest proxy filing, other Twitter executives may receive cash payments. If they are terminated, or if Musk establishes his own management team, Parag Agrawal, the CEO of Dorsey late last year, and CFO Ned Segal, have so-called "Change in Control" clauses in their agreements. Agrawal's clause explains his reporting to the "board of directors of a publicly-traded entity, meaning any acquisition to take Twitter private would trigger the clause.
According to a Twitter proxy, Agrawal would be in line for a $38.7 million pay package, with Segal receiving a $25.5 million package. They would also need to comply with "non-solicitation, non-disparagement, and confidentiality obligations."
It is not clear that Agrawal wants such an outcome. In his announcement announcing the deal, one might see a melancholy tone: "Twitter has a purpose and relevance that impacts the whole world. We are extremely proud of our team and are enthralled by the work that has never been more important."
Either way, Twitter's stock trading remained in the $70 range just last year, but the $54.20 payment might be even more regrettable.
Meanwhile, Twitter board chair Bret Taylor is in line to receive a cash payout of just over $3 million, while former board chair Omid Kordestani will receive a $50.6 million payout.
